Unfortunately there are many occurrences when consumers will need help repairing credit for example: to submit a valid dispute, to negotiate with a collection agency, escalated dispute requests, court intervention. We're going to review some instances when turning to a professional may benefit you to get credit repair help.
The Fair Credit Reporting Act gives everyone the right to submit a credit dispute for any information that is on their credit report. However since the Fair Credit Reporting Act was first passed Congress has made amendments and now they grant permission to the credit bureaus to first decide if your dispute is valid before they investigate.
Were not going to explore the rationale behind Congresses decision but the credit bureaus system of operations does not view any initial dispute attempt as valid. Instead they will respond to an initial credit dispute letter by requesting more information about the dispute regardless of if this information is needed or not.
Many people are surprised to learn that credit bureaus are private profit generating businesses. They annually earn hundreds of millions of dollars in revenue and are not associated with any branch of the US government. These companies instead have public stocks, and investors.
When the credit bureaus investigate a consumer's dispute they are only spending money that would otherwise be profits. There is no revenue to generate for the credit bureaus by correcting information they have collected about you. Therefore the credit bureaus want to avoid as many consumer disputes as possible.
The bureaus have found that if they respond to your credit report disputes by drowning you in frivolous paperwork that many individuals will give up on their dispute and just live with the negative information on their credit report. However the Fair Credit Reporting Act and the US government do regulate the credit bureaus behavior and require them to investigate disputes.
There is a long record of fines handed down by the FTC to all three of the major credit bureaus. This most often is due to violations of the Fair Credit Reporting Act.
Instead of getting frustrated and giving up on your dispute attempt we encourage you to protect your rights and turn to a credit repair professional to assist you. Federal law requires that the credit bureaus do conduct investigations into your dispute and sometimes it may be worthwhile to hire someone with a law degree to ensure that federal law is followed.
Negotiate With A Collection Agency
Another common reason individuals will turn to professional to help them is to negotiate with a valid debt. Many people are unaware that if you just pay all debts you are not actually removing and fixing bad credit but instead doing the right moral thing by paying your debt.
Instead you must get the collection agency to agree to stop reporting negative information about your account to the credit bureaus in exchange for your settlement payment. This way once you have made your payment you can file a dispute with the credit bureaus and when they investigate the item and want to verify it with the collection agency the collection agency will not verify it, and consequently the item will have to be erased from your credit report.